Sisk UK’s 2022 financial results

Sisk's parent company Sicon Limited announces its financial results for the year ended 31 December 2022, with a total turnover of €1.73bn.

Street level of Moda, The Mercian Build to Rent development in Birmingham - one of Sisk's key projects | BTR News
Street level of Moda, The Mercian Build to Rent development in Birmingham - one of Sisk's key projects.

The parent company of Sisk’s construction business, Sicon Limited, has recently announced its financial results for the year ended 31 December 2022, with a total turnover of €1.73bn and profit before tax at €11.6m.

The UK construction division delivered a turnover of £350.7m; down slightly from £382.9m in the previous year. It also incurred a loss of £2.5m before tax during the year – down from a pre-tax profit of £8.4m in 2021.

Two of Sisk’s key projects are Build to Rent schemes. This include the tallest 481-apartment residential tower in Birmingham – Moda, The Mercian – which celebrated completion and was handed over in 2022. The scheme includes over 42-storeys and related resident amenities, including a cinema and a 200-metre rooftop running track.

Wembley Park in London continues to be a major location for the company, with works ongoing on the latest phase of Quintain Living’s Build to Rent development, following the operator’s largest construction contract to date.

Other key projects include the construction of a new state-of-the-art campus for Santander in Milton Keynes, which is almost complete, a new office for a bank that will be home to over 6,000 employees, near completion of the Isle of Man Ferry Terminal building in Liverpool’s docks, and the construction of No 1 Birmingham Health Innovation Campus (BHIC) in Selly Oak.

“The business performance in the year was impacted to varying extents by the effects of Covid-19 on projects which commenced building work before the costs of implementing new ways of working were fully understood. The business was also impacted by the effects of price inflation, particularly in respect of the impact of energy costs on fixed price contracts. The war in Ukraine had a relatively minor impact on the company’s construction activities.

“The business anticipates returning to profitability in 2023, with a very strong order book for the current year and good line of sight into 2024. In addition, the acquisition of Fuse Rail, an electrification and specialist service provider in the rail sector in the UK, in January 2022 will bolster the Group’s already strong Rail market offering, which we expect to grow significantly over the next five years.

“I am pleased to report a strong financial performance during 2022, demonstrating the resilience of the business despite continued macro-economic uncertainty and inflationary pressures. Over the past year, we have continued to enhance our legacy of building excellence with a modern, technologically advanced approach to the delivery of critical infrastructure, creating opportunities for people and contributing to societal progress. As we continue to deliver on our purpose of creating places for future generations, the strength of the Group balance sheet and the high quality of our order book will enable us to capture opportunities for profitable growth, while remaining resilient in dealing with the macro-economic challenges we face.”

Paul Brown, CEO, John Sisk & Son

Geographical spread of turnover in 2022 is at €997.8m in Ireland, an increase from €715.5m in 2021.

In the UK, turnover is down from €499.2m in 2021 to €490.9m last year. Continental Europe also follows a decrease, with €271m in 2021 down to €249m last year.

The company is delivering secured work for 2023, with some excellent project and framework wins, and has good visibility into 2024. This year, Sisk broke ground on Moda Living’s Great Charles Street Build to Rent scheme and celebrated topping out with HUB at the Uncle Leeds Build to Rent development.